Did somebody say something about Government "Budget Deficits"?

by Dick Fojut

Our State and Local government "BUDGET DEFICITS" may not reflect large SURPLUSES of CAFR money income our governments' ACTUALLY possess! For example: in 2003, the State of Arizona had an $11.45 BILLION SURPLUS of Taxpayers money it was not using! The City of Phoenix had a SURPLUS of $2.34 BILLION! (See details further below.)

WHY ARE MEDIA PEOPLE NOT PUBLICLY ASKING ABOUT THESE LARGE, SOME HUGE, CAFR SURPLUSES OF MONEY?

CAFRS are the Comprehensive Annual Financial Reports sent each year to Washington, revealing the ACTUAL financial investment earnings, income, etc., and SURPLUSES of money separately possessed by 84,000 Government related entities - States, Counties, Cities, School Districts, Pension Funds, etc.

A State ONE BILLION DOLLAR BUDGET DEFICIT sounds enormous! (It was in Orange County too years back! See further below how they "solved" their deficit.*)
But publicly reported yearly BUDGETS and BUDGET DEFICITS do not reveal ACTUAL government financial conditions - especially SURPLUSES! Only the CAFRS do!

If there are LARGE SEPARATE ("off normal budget") CAFR SURPLUSES in the State of Arizona, its counties, cities and school districts, etc., it appears possible the proposed money-saving closing of schools, non-hiring, layoffs of teachers and other public employees - and tax increases - may NOT be as critically necessary as thought! (Probably the great majority of government officials, employees - and media editors, reporters are unaware of the CAFRS and CAFR surpluses.)

About the CAFRS: the COMPREHENSIVE ANNUAL FINANCIAL REPORTS...
Since 1946 (legislated by a wiser Congress), 84,000 Government entities including States, Counties, Cities, School Districts, etc., have been required yearly to report the ACTUAL accumulated financial assets and income they each separately possess.

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THE NATIONAL CAFR SCANDAL WAS FIRST EXPOSED BY WALTER BURIEN...

Arizonan Walter Burien http://cafr1.com/ was the first to alert us that the Comprehensive Annual Financial Reports have intentionally been kept largely "invisible" to the American public, now for over 60 years!


Burien further revealed that:

The composite totals of investment assets held internationally by USA government is staggering. Between local and Federal government, the total of liquid investment assets held Internationally is a conservative sixty (60) Trillion dollars.

- And if Burien is correct with these percentages, note the following incredible revelation about behind-the-scene government ownership of American Big Businesses:


...Government owns most through Bond - Loan investment / stock ownership [EXAMPLES: 82% stock ownership of Microsoft Corporation, Disney 61%, AOL - Time Warner 58%, EXXON 72%] to manufacture abroad so that Government would realize greater returns on their investments at the Peoples of the USA's expense in jobs and wealth retention.

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About Arizona specifically...


In 1999 Burien persuaded fellow Arizonan, retired Air Force Intelligence Officer and expert Govenment Auditor, Lt. Colonel Gerald Klatt, to do the necessary accounting to reveal the yearly CAFRS for some 39 States including Arizona - along with the two major Arizona counties and some cities. Colonel Klatt (cafrman.com), did so each year - until he died in 2004. The following CAFR reports are only through 2003. (But it should reasonably be expected that the CAFR government surpluses TODAY in 2008 total MORE than shown through 2003.) Valid question: Are the current proposals to cut teachers, government employees, services and increase taxes REALLY necessary? Consider the following...

Separate CAFR surpluses in Arizona through the year 2003 (from Klatt's website)...

The State of Arizona Has At Least $11.45 Billion In Surpluses of the Taxpayers Money it is not using.
FY 2003 Report
http://www.cafrman.com/Articles/Art-AZ-S1.htm
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Phoenix Has At Least $2.34 Billion In Surpluses of the Taxpayers Money it is not using.
FY 2003 Report
http://www.cafrman.com/Articles/Art-Phoenix-AZ-CY1.htm
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Maricopa County Has At Least $845 Million In Surpluses of the Taxpayers Money it is not using.
FY 2003 Report
http://www.cafrman.com/Articles/Art-MaricopaCounty-AZ-C1.htm
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Pima County Has At Least $239 Million In Surpluses of the Taxpayers Money it is not using.
FY 2003 Report
http://www.cafrman.com/Articles/Art-PimaCounty-AZ-C1.htm
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Scottsdale Has At Least $483 million In Surpluses of the Taxpayers Money it is not using.
FY 2003 Report
http://www.cafrman.com/Articles/Art-Scottsdale-AZ-CY1.htm
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Tempe Has At Least $341 Million In Surpluses of the Taxpayers Money it is not using.
FY 2003 Report
http://www.cafrman.com/Articles/Art-Tempe-AZ-CY1.htm
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Glendale Has At Least $385 Million In Surpluses of the Taxpayers Money it is not using.
FY 2003 Report
http://www.cafrman.com/Articles/Art-Glendale-AZ-C1.htm
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Mesa Has At Least $245.4 Million In Surpluses of the Taxpayers Money it is not using.
FY 2003 Report
http://www.cafrman.com/Articles/Art-Mesa-AZ-CY1.htm
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One nearby State...
The State of CALIFORNIA Has At Least $59.83 Billion In Surpluses of the Taxpayers Money it is not using.
http://www.cafrman.com/Articles/Art-CA-S1.htm
FY 2003 Report

"RAINY DAY FUNDS."
I've lived in Tucson for over 50 years, but until about year 2000 when some of us asked about the CAFRS, I had never heard about any "RAINY DAY FUND" - that our then County Manager said he "didn't want to dip into." Soon after, the then Arizona Governor also mentioned "not wanting to dip into the State RAINY DAY FUND." Recently on TV I heard one Network commentator say that some States may have to "dip into their RAINY DAY FUNDS." I am suspicious the term "RAINY DAY FUND" has been presented locally and nationally, to avoid admitting the existence of the publicly unknown (often HUGE) CAFR surpluses of money funds not being used (or returned to Taxpayers) by local and State governments!

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*Referred to at top, about another (past) ONE BILLION DOLLAR BUDGET DEFICIT - in Orange County, California... The following is extracted from Burien's article further down "CAFRS: THE BIGGEST SECRET"

* When Orange County lost a little over $1 billion in derivatives investments, they were crying "poverty" and threatening to shut down schools, police would have to be laid off etc. However someone dug into the Orange County CAFR and found out that the county had about $16 billion in profitable investments! The county, from their profitable liquid investment funds / cash position could have continued performing the same services, without collecting one dime in taxes, and could have done so for another 11.9 years from the existing funds prior to running out of money! The crying stopped.

* While he was a Mayor, Jesse Ventura's city council wanted to raise $360,000 in taxes to cover a short fall on their "city budget for schools." Ventura objected when he discovered the city owned $48,000,000 in idle investments funds from which the $360,000 could be drawn from without raising taxes!

From Walter Burien's current website...

THE GOVERNMENT OWNS IT "ALL" BY INVESTMENT - By Walter Burien
Comprehensive Annual Financial Report - CAFR
http://cafr1.com/
May 2, 2008

Excerpts only...

THE CAFR SHELL GAME - THE REVOLUTION - BE A PART OF IT!

"GROSS" INCOME of government is now 1/3rd "TAX" income and 2/3rds NON-TAX income derived from: return on INVESTMENTS and money generated from government Enterprise projects.

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Any Company or in fact Country can be "made" or "broken" through the use of those government investment funds. China just cut off further new US "Government" investments, now several trillion dollars worth in China so that would not happen. China learned by seeing what happened to Mexico then Russia.
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The #1 Profit makers for Government from their investments are: The War Industry; Oil Companies; Pharmaceuticals; and Banking. (300% to 400% profits) - for NY CLICK HERE (on web page) TO SEE THE INVESTMENTS SHOWN IN JUST ONE (1) CAFR ( 2006 - NYSR-CAFR ) or for CA ( 2006 - CALPERS - CAFR ) .pdf file

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Local and Federal Government's gross income in 1999 was 8.5 trillion dollars and the entire population's of the USA gross income, "net after taxation" 4.8 trillion dollars.

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After you look at a state CAFR review, then look at your many city, county, school district, State University CAFR. Government Enterprise operation such as Toll ways, Bridges, Ports, water, sewer, power, recycling, CAFRs should then be looked at.
Pensions, self-funding debt financial authorities, self insurance authorities CAFRs should be looked at also. As of 2005 there are over 84,000 "individual" Annual Financial Reports (the CAFR) produced by just our local government operations. Each with their own investments and cash accounts...

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The composite totals of investment assets held internationally by USA government is staggering. Between local and Federal government, the total of liquid investment assets held Internationally is a conservative sixty (60) Trillion dollars.

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Could it be that our own Government over the last several decades has been promoting to those fortune 500 companies, of which Government owns most through Bond - Loan investment / stock ownership [EXAMPLES: 82% stock ownership of Microsoft Corporation, Disney 61%, AOL - Time Warner 58%, EXXON 72%] to manufacture abroad so that Government would realize greater returns on their investments at the Peoples of the USA's expense in jobs and wealth retention.



Additional articles by Burien...
CAFRs: The BIGGEST Secret -
$60 Trillion Invested By Fed, State, & Local Governments! 6-30-00
http://www.rense.com/general2/bigsecret.htm

Excerpts only...

Reported - but for all purposes HIDDEN from American taxpayers - Local, State and Federal governments currently hold about 60+ trillion dollars of profitable investments in real estate, pension funds, insurance companies, liquid investment funds, bond financing accounts and corporate stock portfolios (32 Trillion) over 53% of America's stock market, and a large percentage of the international stock market, etc., are all revealed in their required filing of CAFRs (Comprehensive Annual Financial Reports) and noted reports therein.

Walter Burien, who has been blowing the whistle on this gargantuan scam, says, "Americans OWN the majority of America's WEALTH and don't know it." With the profits rolling in from international investments, you now know the true motive behind NAFTA and GATT.

* When Orange County lost a little over $1 billion in derivatives investments, they were crying "poverty" and threatening to shut down schools, police would have to be laid off etc. However someone dug into the Orange County CAFR and found out that the county had about $16 billion in profitable investments! The county, from their profitable liquid investment funds / cash position could have continued performing the same services, without collecting one dime in taxes, and could have done so for another 11.9 years from the existing funds prior to running out of money! The crying stopped.

* While he was a Mayor, Jesse Ventura's city council wanted to raise $360,000 in taxes to cover a short fall on their "city budget for schools." Ventura objected when he discovered the city owned $48,000,000 in idle investments funds from which the $360,000 could be drawn from without raising taxes!

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CAFRs And Pending US 'Economic Collapse

By Walter J. Burien, Jr
WalterBurien@cafr1.com
http://www.rense.com/general74/cafrss.htm
Oct. 29, 2006
Excerpts only...

1. Composite wealth may now be 80 trillion but I always use a conservative 60 trillion plus. This money is standing investment and cash accounts.

2. There "is" an Economic Disaster looming. Government in their greed to hoard the wealth has taken over the market. In fact government "is" the market now.

In 1929, the public was the primary holder and they would and did have panic selling spree causing the collapse. Now government is the primary holder and they orchestrate continued gains to perpetuate their balance sheets.

Here a bubble exists but a bubble under ultimate control. If 100% of the public panicked and sold every share they owned, the market would have a severe dip but then come right back and then shoot higher with government now picking up most of those shares at a discount and then by effect would own 100% of the market.

Government did this before and after 911. They had massive short derivatives held going into 911 whereby a few trillion were picked up on those derivatives almost overnight as time goes when the derivatives were exited from.

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The Government Economy Con-Game = "Derivatives"

By Walter Burien
http://CAFR1.com/NGE.html
March 15, 2008

A few excerpts only...

One way Government now "creates wealth" out of thin air is by covertly taking it "all" as a monopoly from everyone else. The ever-growing 516 trillion dollar international derivative market is a key tool used by Government to do just that. Read the article linked below, (see URL links in website article) but before you do, please read my comments below the link first:

Many of these investment funds are now managed outside of the US (off-shore) with trillion dollar US Government account balances that are not even visible for ease of inspection per their trading activity.. Do the lower level government employees know this? No, for most they do not.

Last year the Chinese Government cut off further US Government investments in China (US Government investment funds, especially on their derivatives market were taking over). India on the same day put restrictions on US Government investments in their derivatives market for the same reason also. The following day the US Stock Market was down 650 points. (Some thought the game was over, but it was not)

But don't worry about the US Stock market foolks, whoops, sic: folks) US Government local and federal owns the primary corporations in the US Market by composite stock ownership. Private sector ownership is insignificant in comparison. Salute Comrades!

To have a NWO (New World Order) under your control, derivatives are an important step to knock-out all opposition by taking their wealth and they will come in-line for management soon enough and then be accepted into the ranks of the inside players...

Not a peep on TV per the core of this game? Well, Silence is Golden it seems.





Dick Fojut is a long time Tucson resident and businessman.

Will the Right Sit It Out?

by Patrick J. Buchanan

April 29, 2008

If John McCain wins the presidency, his comeback -- after the bankrupt debacle his campaign had become in the summer of 2007 with his backing of the amnesty bill -- will be the stuff of legend.

And as nominee, he is entitled to conduct his own campaign and be cut slack by a party whose brand name is now Enron.

That said, McCain seems to have decided to win by love-bombing the Big Media and putting miles between himself and the base.

Consider his "Forgotten Places" tour of last week.

It began in Selma, Ala., where McCain went to Edmund Pettis Bridge to hail John Lewis and the marchers night-sticked and hosed down by the Alabama State Troopers on the Montgomery march for voting rights.

Now that was a seminal movement in the fight for civil rights.

But this is not 1965. Today, John Lewis is a big dog in the "No-Whites-Need-Apply!" Black Caucus. The Rev. Jeremiah Wright is sermonizing White America. The Rev. Al Sharpton is trying to shut down the Big Apple. And the fight for equal rights is being led by Ward Connerly.

With no help from McCain, Connerly is trying to put on five state ballots a Civil Rights Initiative that declares white men are also equal and not to be denied their civil rights because of the color of their skin.

And where does McCain stand?

From Selma, McCain went to the Gee's Bend Quilters Collective, where black ladies make the famous blankets. The stop could not but call to mind the hundreds of thousands of textile and apparel jobs in the Carolinas and Georgia lost after NAFTA and Most-Favored Nation for China, both of which McCain enthusiastically supported.

McCain's next stop was Inez, Ky., where LBJ declared war on poverty. But LBJ's war was a politically motivated scheme to shift wealth and power to government, which led to a pathological dependency among America's poor, his own abdication and Ronald Reagan's 1980 campaign against Big Government that ushered in the Conservative Decade.

McCain then went to New Orleans to backhand Bush for failing to act swiftly to rescue the victims of Katrina.

But the real failure of New Orleans was of the corrupt and incompetent regime of Mayor Ray Nagin and the men of New Orleans, who left 30,000 women and children stranded in a sea of stagnant water.

No doubt Bush hit the snooze button, but why the piling on?

Then McCain headed up to Youngstown, Ohio, to tell the folks their jobs are never coming back and NAFTA was a sweet deal.

But why, when America's mini-mills and steel mills are among the most efficient on earth -- in terms of man hours needed to produce a ton of steel -- aren't those jobs coming back?

Answer: It is due to the free-trade policies of Bush and McCain, which permit trade rivals to impose value-added taxes of 15 percent to 20 percent on steel imports from the United States while rebating those taxes on steel exports to the United States. We are getting it in the neck coming and going.

An America First trade and tax policy could have U.S. steel mills rising again, while those in Japan, China, Russia and Brazil would be shutting down as uncompetitive in the U.S. market.

But we no longer put America first.

The U.S. government burns its incense at the altar of the Global Economy. The losers are those guys in Youngstown McCain was lecturing on the beauty of NAFTA. And the winners are the CEOs who pull down seven-, eight- and even nine-figure annual packages selling out their country for the corporation.

Does McCain think $6 trillion in trade deficits since NAFTA, a dollar rotting away and 3.5 million manufacturing jobs lost under Bush was all inevitable? Does he think we can do nothing to stop the deindustrialization of a country that used to produce 96 percent of all it consumed?

Why should those guys in Youngstown vote for McCain?

So the feds can teach them how to shovel snow?

Even Hillary, whose husband did NAFTA with Newt Gingrich and Bob Dole's help, now gets it.

Then McCain took a time out to denounce the North Carolina GOP for ads tying the Rev. Wright to Obama, and the pair to two Democratic congressional candidates. To their credit, the North Carolinians told McCain where to get off and are running the ads.

What does a McCain victory mean for conservatives?

Probably a veto on tax hikes and perhaps a fifth justice like Antonin Scalia, Clarence Thomas, Samuel Alito or John Roberts, to turn two pair into a full house. Fifty years after Warren, it could be game, set, match for the right.

But McCain may also mean more Middle East wars, more bellicosity, more manufacturing jobs lost, malingering in the culture wars, and more illegal aliens and amnesty.

In Pennsylvania, thousands of Republicans re-registered to vote Democratic, and 27 percent of the GOP votes went to Mike Huckabee or Ron Paul. McCain may just stretch this rubber band so far it snaps back in his face.

Why McCain Would be Worse Than Bush

by Patrick J Buchanan
January 25, 2008

In 2004, the voters of Arizona, by 56 percent to 44 percent, enacted Proposition 200, requiring proof of citizenship before an individual may vote or receive state benefits. Forty-six percent of Hispanics voted for Prop. 200, giving the lie to those who say Hispanics support the illegal invasion of their country.

Over 190,000 Arizonans petitioned to put Prop. 200 on the ballot. As it simply required proof of citizenship before receiving the benefits and privileges of citizenship, who could oppose it? Answer: the entire GOP congressional delegation, led by Sen. John McCain.

This is the same John McCain who battled the border fence and colluded with Teddy Kennedy on the amnesty bill rejected by Congress last year after a national uproar.

Bottom line: If the presidential race is between Hillary and Amnesty John, the border security battle is over and lost. As Laura Ingraham asks, “If Congress passes McCain-Kennedy in 2009, would President McCain sign it?”

For conservatives, the stakes could not be higher.

For on the great controversies, McCain has sided as often with the Democrats and the Big Media that pay him court as with conservatives.

Where President Bush has been bravest, on taxes and judges, McCain has been his nemesis. Not only did McCain vote against the Bush tax cuts twice, he colluded to sell out the most conservative of the Bush nominees to the courts.

In 1993, McCain voted to confirm ACLU liberal and pro-abortion Ruth Bader Ginsburg. But when Bush set out to restore constitutionalism, McCain colluded with Democrats who wanted to retain power to kill Bush’s most conservative nominees.

McCain helped form the Gang of 14, including seven Democrats, who agreed to block a GOP Senate from using the “nuclear option” – allowing a simple GOP majority to break a Democrat filibuster of judicial nominees – unless the seven Democrats approved. McCain thus conspired with liberals to put at risk the most courageous conservatives nominees of President Bush.

With his record of voting for liberal justices Ginsburg and Stephen Breyer, and of colluding with Democrats in their campaign to kill the most conservative Bush nominees, what guarantee is there a President McCain will nominate and fight for the fifth jurist who would vote to overturn Roe v. Wade?

In the battle over campaign finance reform, McCain colluded again. The McCain-Feingold law denies to gun folks and right-to-lifers their basic First Amendment right to name friends and foes in ads run before elections.

As for the policies that have transparently failed Bush and the nation, McCain remains an obdurate advocate.

After America has run five straight record trade deficits that have denuded the nation of thousands of factories and 3 million manufacturing jobs, McCain is still babbling on about Smoot-Hawley.

“When you study history, every time we’ve adopted protectionism, we’ve paid a very heavy price,” McCain told a Detroit paper after informing Michiganders their auto jobs are never coming back.

But what history is John McCain talking about?

Was the Tariff of 1816, which saved infant U.S. industries from the malicious dumping by British merchants after the War of 1812, a failure? Were Thomas Jefferson, John Adams, John Calhoun and Henry Clay fools to support President Madison’s tariff?

From Abraham Lincoln through Calvin Coolidge, the Republican Party – the Party of Protection – put 12 presidents in the White House to two for the Democrats, and the United States became the mightiest industrial power in history, producing 42 percent of the world’s manufactured goods.
This is failure – while Bush free trade is a success? Tell it to Ohio.

Even Hillary Clinton, whose husband enacted NAFTA with McCain’s support, has begun to question the NAFTA paradigm. Not McCain.

Where Dwight Eisenhower and Richard Nixon came to office determined to extricate the nation with honor from a war whose costs had begun to outweigh any benefit, McCain is talking about spending 50 or 100 years in Iraq.

Where Bush, by moving NATO onto Russia’s doorstep, planting bases in Central Asia and intervening in the affairs of Russia’s neighbors, has undone the work of Reagan in making Russia a friend, he sounds like George McGovern alongside the braying McCain, who can’t wait to get into Vladimir Putin’s face.

Where Bush finally cleansed his administration of neocons, if not of their legacy, a McCain candidacy is the last, best hope of a neocon restoration and new military adventures in the Middle East.

If Rudy Giuliani founders in Florida, neocons will be chanting, “Mac is back!”

The three issues that ruined the Bush presidency are this misbegotten war in Iraq, the failure to secure America’s borders from invasion and a mindless trade policy that has destroyed the dollar and left foreigners with $5 trillion to buy up America at fire-sale prices.

McCain remains an unthinking advocate of all three.

But where Bush was at his best, on taxes and judges, McCain was collaborating with Hillary. The question conservatives may face if McCain is nominated is not whom should I vote for, but should I vote.